LBO France bids for Wendel-backed construction company in €290m deal

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brick-stack-835403-mPrivate equity firm LBO France has made an offer to buy Chryso, a subsidiary of construction materials firm Materis, from fellow PE house Wendel.

The enterprise value for the company is €290m or 8.3-times Chryso’s 2013 EBITDA, according to Wendel.

The transaction could take place in the second half of 2014 and would enable the repayment of a large portion of the shareholder loan provided by Wendel including those which the firm announced earlier this month.

These consisted of furnishing Chryso with a seven-year bullet term loan of €165m and a six-year revolving credit facility worth €38m.

In 2009 Wendel arranged a deal with Materis’ lenders over its €2bn ($2.82bn) debt which saw a due payment of €290m deferred to 2013. The firm injected €45m into Materis as part of the deal.

Other businesses in Wendel’s portfolio include industrial bakery equipment manufacturer Mecatherm, telecoms company IHS and building materials company Saint-Gobain.

 

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